Shares of travel aggregator Dreamfolks Services recovered marginally on clarification by management after a sharp fall of over 10 percent on June 19 following news agency PTI's report citing people familiar with the development that leading banks and card networks including ICICI Bank, Axis Bank and Mastercard are exploring to shift away from the aggregator's services and aiming to establish direct partnership with airport lounge operators.
The management of Dreamfolks told CNBC-TV18 that the news report is 'incorrect' there has been no cancellations in its partnership with clients, and its relations with all partners remain 'strong and fully intact'.
Last year in September, DreamFolks had seen a 'temporary disruption' that hit lounge access for thousands of customers of banks and card networks, which was resolved the next day, but PTI News said citing sources that banks and card networks have since then been exploring other alternatives.
Dreamfolks had in May assured that its relations with banks remains 'very, very strong'. Chief Business Officer Sandeep Sonawane said last month, "...almost top 10 banks are now deeply integrated with us, and that's the kind of trust that they have shown."
DreamFolks is the third-party aggregator for lounges at GMR and Adani-operated airports. At the time of the crisis in September, Adani Airpor had said that blamed the company for the disruptions in lounge access and said, "This is due to the unexpected suspension of services by DreamFolks Services Ltd, a lounge access provider partnered with several banks, in violation of its service agreements with the affected airports."
The management has indicated in the past that it is looking to change the spread of the business and reduce the reliance on airports, which currently contributes 93 percent to the revenue. "In FY25, we have already signed up 30 marquee enterprise clients, which includes the OTAs, travel agents and also loyalty companies and other enterprises. So, we also understand that, yes, the spread needs to change, and that is the step what we have taken," Chairperson and MD Liberatha Kallat said after the March quarter earnings. Other services that Dreamfolks provides at the airport are food and beverages, spa and wellness, meet and assist, and airport transfers.
For FY25, Dreamfolks reported a 14 percent growth in revenue at Rs 1,292 crore but the net profit fell by 5 percent to Rs 65 crore.
The company manages lounge and other benefits for most top banks and card networks, including the top five credit card issuers and has a 100% coverage across airport and railway lounges in India. The management is aiming at growing the topline by 2.5x in the next five years.
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